Bankruptcy question. credit cards and car loan?

You earn around $19,000 a year and you bought a car that cost over $23,000????? No wonder you're living from paycheck to payckeck. with your income you should be paying no more than $14,000 on a car and about $170 a month or less (or better yet get a used one that's within 5 years old like maybe from a rental car company because taking a new car off the lot well it depreciates a lot and you lose a bunch ofm oney). so the answer is if you turn in your car for another then you'd have both the old loan and the new loan combined and the payments would be huge. So see if you can find a buyer and then go to your dealership and see if you can work that out between the loanor and yourself to get out from under this huge debt.

No, a person isn't supposed to declare bankruptcy unless they owe over $65,000 and most of what's owed is medical/hospital bills). Yours you can work your way out of without ruining your life with a bankruptcy.

Once you get rid of the car and out from under that loan you'll be able to live again.

What were you THINKING, buying a $23,000 car when you only make $1,600/month? How on earth did you even get approved for that loan to begin with? You're trying to have a middle class life on lower class wages.

You can't declare bankruptcy and pick and choose what debts you discharge. Even if you could, you would seriously choose to discharge a measly $2,800 debt over a $23,000 debt? Really? Wow, I wonder how you got yourself in this situation with those savvy financial skills.

Sell the car. Now. It's too expensive, you cannot afford it. Use the proceeds to buy a $5000 (max) car and pay off that credit card debt. As long as you get at least $8000 for the car (should be no problem), then all of your problems will be solved.

1

I am with everyone else. What possessed you and the bank to allow yourself to purchase a car like that? You want to keep the larger debt and write off some puny one seems like the easy way to me. I agree with the people who are saying sell the car, buy one that is within YOUR CURRENT means. If it comes down to it, a bus pass is a LOT cheaper then a car. If you are set on bankruptcy then you should include the car and kiss it good bye.

As you said it "I am in a tough position right now". YOU put yourself there. YOU chose to rack up the debt, and buy a car you can NOT afford. You have yourself to thank for the debt. You can make choices now based on what you can afford. If you sold the car and got a cheaper one I bet you can live within your means. Getting rid of bills that aren't a necessity like cable, internet, different cell phone plan, you can save even more money. There is a way out of your situation besides bankruptcy.

Once in bankruptcy you will lose the credit card debt. Here is the difficult part, the bankruptcy judge will determine whether you can afford the vehicle or not and ask you directly how you plan to do it. Why in the heck would you purchase a car the is worth more than your annual income? You will need to go through a financial planning course, but hopefully you have already learned. My guess? The car is history.

How did you even qualify for such a huge car loan? I make $100k+ a year and the most expensive car I have ever owned was $17,000. sell the car - you will probably lose money so you'll need to convert the unpaid balance to a personal loan, then get a very cheap used car and get a 2nd job to pay off debts

You should look at bankruptcy as a once in a lifetime get out of jail card, your situation is just not serious enough to play it, all other possible, even if painful measures should be taken, in your case getting out of the car payments, and taking public transportation, though there are provisions for retaining transportation after bankruptcy, it may ave to be a vehicle already paid off.

One article examining repeat bankruptcy

http://www.hemphill-attorney.com/blog-bankruptcy/r...

stop buying 23 grands worth of car you t!t ...if you can't afford it

idiots in this world ( sigh )

sell the car , buy a second hand one and use the money to dig yourself out of the hole by using money from car to pay off credit cards ( and destroy the cards ) , then take any money left over and reduce the size of the car loan payments

thus reducing monthly outgoings , while still maintaining transport

bankruptcy is a last option ..it stays with you for years ...... and no one will give you any money on loan again as your a T!t